HKL’s request to issue bonds approved

May Kunmakara / Khmer Times No Comments Share:
A woman walks past the entrance of Cambodia Securities Exchange (CSX) before Phnom Penh Special Economic Zone (PPSEZ) debuts on the domestic stock market and becomes only the fourth company to list on the country's stock exchange, in Phnom Penh, Cambodia May 30, 2016. REUTERS/Samrang Pring

The Cambodia Securities Exchange (CSX) last week approved Hattha Kaksekar Limited’s request to begin the issuance of corporate bonds.

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The approval means HKL will become the first company to issue corporate bond in the nascent local bourse.

“We would like to inform that Hattha Kaksekar Limited is the first company to obtain approval from CSX to issue corporate bonds,” CSX said.

“The company is now reviewing the procedure for issuing corporate bonds,” it added.

In early August, HKL obtained approval from the Central Bank to begin issuing bonds.

HKL has received guidance from SBI Royal Securities, a financial advisor and underwriter, during the bond issuing process.

The company will offer a total of 80 billion riel in bonds (about $19.7 million), with an additional 40 billion riel ($9.85 million) in case demand from targeted investors exceeds expectations.

The bonds have a tenor of 3 years and the annual coupon rate ranges from 7.5 to 8.5 percent.

Hout Ieng Tong, president and CEO of HKL, said the move signals the start of the corporate bond market in Cambodia.

“HKL will be the first company in Cambodia to issue corporate bonds,” he said.

“The company will use the net proceeds for funding growth in the lending business, as working capital and for general corporate purposes.

“The proceeds will also support micro, small and medium-sized enterprises in rural and urban areas,” Mr Ieng Tong added.

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